How Can I Repair My Credit Report?
Your credit reflects your ability to handle money responsibly, or at least that’s how creditors view your credit report. Many people, who are perfectly capable of handling their money, run into financial problems, which ultimately leads to a disastrous credit report. These same people seek out financial help, asking “how can I repair my credit report?” The answer is simple: get a copy of your credit report.
However, even if you think your credit is fine, you might not realize there could be errors on your credit report that are adversely affecting your credit score. That’s why it’s so important that you obtain a copy of your credit report at least once a year to review and look for errors. Personal credit report repair can be easy if you keep on top of the situation
To obtain a credit report, you can visit the website of one of the three major credit bureaus: Experian (www.experian.com), Equifax (www.equifax.com) or TransUnion (www.transunion.com). If you meet certain criteria or live in certain states, you’ll find you are entitled to at least, and generally at maximum, one free credit report per year. However, the charge for a copy of your credit report is generally less than ten dollars.
Once you’ve got your credit report in hand, get out a red pen and start checking. Make a note of all mistakes.
- Check how your name, address, social security number and other personal information are listed. It’s not uncommon for two people with similar names to have information mixed up on their credit reports.
- Are there any accounts or lawsuits listed on your credit report that don’t belong to you?
- Are there any accounts that you closed not listed on your credit report as “closed by consumer?”
- Do you notice any late payment notations when you actually paid on time?
- Information that is seven years or older and bankruptcies ten years or older should no longer be listed on your credit report.
- Make sure there are no accounts that are listed twice.
- If you’ve filed for bankruptcy in the past, is it listed in the proper category? For example, make sure if you filed Chapter 7 bankruptcy it’s listed as Chapter 7, not Chapter 13. This can make a big difference on your credit report.
If you’ve found any mistakes on your credit report, write a letter to each of the credit bureaus informing them of the mistakes. This is the first step you’re going to take to repairing your credit report. If you don’t receive a response within 30 days, send another letter or call the credit bureau directly.
It is important to note that it does take time-generally at least three months-to wipe the mistakes off of your credit report. If you’re applying for financing for a car or a mortgage, you can try calling the credit bureau directly. They may be able to adjust the information on your credit report immediately under such circumstances.
Ultimately, the most effective way that the typical consumer has to repair their credit reports is to ensure, at the very least on an annual basis, that there are no mistakes on it. Mistakes will have an adverse effect on your credit score. If you live in one of the states that offers one free credit report per year, take advantage of that offer. If you don’t, keep in mind most states limit the charge to less than $10.00 for each credit report, and in many cases you have the right to a free report.
|
About This Article: Copyright (c) 2005 by Dennis Becker. You may publish this article, in its entirety, on your web site or in your ezine, as long as you include this full signature box including an active hyperlink to our web site. |